Now, on Router A (also using RIP), I've got a route-map that routes traffic from LAN of Router A (source) with a destination of LAN on Router B over the T1 line.
Route-map X permit 10
Match address 112
Match interface (T1 interface)
Set ip next-hop (T1 next-hop)

I pulled the T1 line from CSU/DSU from Router B and we lost connectivity with Router A's LAN. If that because Router A is forced to route traffic over the T1 due to my route-map policy? Why did the traffic not begin routing over the frame?

Rip uses simple hop-count, so may not be your answer.
OSPF and EIGRP are better suited to determine the best route based on a variety of metrics.
Simple floating statics are the best way to direct traffic, but you have to do both ends which is not conveninient if you have multiple sites.
I would definately look at a more robust dynamic routing protocl like OSPF to make the routing decisions for me instead of trying to force it with a route map.

You may find it easier to use EIGRP if you're converting from RIP, because it is configured similarly. Only one additional thing to do: On the serial interfaces, just configure a bandwidth statement that gives the actual bandwidth of the serial link in kbps. As long as the frame relay bandwidth is set lower than the T1 on both sides, EIGRP (or OSPF) will ALWAYS choose the T1 if it's available.

The other advantage of EIGRP or OSPF over RIP is that they will failover much faster- in seconds, not minutes.

I agree with both of you on switching over to EIGRP or OSPF, but right now with 7 sites and a mixture of Bay ASN + Cisco, it's not exactly the easiest thing in the world to do. I'm slowly removing Bay from the picture, and once I get to that point, I would like to introduce EIGRP or OSPF. For the time being, am I simply out of options due to using RIP, or can I some how get this to work with a mixture of floating routes & route-maps?

I don't want to load balance - 100% over the T1 line unless it fails, then the frame will need to take over (until the T1 connectivity is restored.)

I've never used it, but it appears to let you do the same thing as discussed for EIGRP: You can specify an interface and tell RIP to add some number of hops to any routes learned (or broadcast) on that interface. By putting that on the frame relay interface on both sides, you would make routes through that interface less preferable.

The problem is that I need to enforce route-map policies because I want traffic to flow over certain links throughout the sites. For example, two of the seven sites, I have the traffic flowing over the Frame Relay link rather than the Backup PTP T1. However, for the case mentioned above, I have traffic flowing over the T1 but would like Frame Relay to be there for as a backup. will EIGRP or OSPF be able to support such routing policies and offer some sort of failure backup measures?

This has the effect of adding 1 hop to the metric of all routes learned from serial 0/0.12, which should be 1 hop more than what's learned over the T1 (or vice versa when necessary). You may need to change the number of hops added depending on your exact topology.

You can specify any interface you want to apply the offset-list to, and any routes you want. Any routes not listed would be unchanged.

Exactly how you implement it really depends on your exact topology. When you set an inbound list, you are telling the router which link to send traffic OUT on, because the list controls inbound routes, not inbound traffic. When you set an outbound list, you are telling the router to advertise the route out differently depending on the link. This will affect INBOUND traffic because the attached router will pick the better route.

So you probably want to put it on every router, but if you're trying to specify which routes you adjust, the access list will have to be different on every router. I suggested "any" because it covers any route, but only affects the metric on the interface you specify. Other interfaces are unaffected.

When you set an inbound list, the extra hop you added will be advertised out to the next router, so a route that arrived with a metric of 1 will leave with 3, not 2. Remember that you only have 15 hops to play with in RIP. If you add hops everywhere you may run out. If your 7 sites are more or less in a star topology you should be fine. If they're in a string you may have a problem. That's one reason (of many) why EIGRP or OSPF are so much better than RIP.

This sounds like it would work in a less complication, smaller environment. I'm tempted now if I should start a new thread - support on converting from RIP to EIGRP. Unless you're up for a challenge? :)

Well, lrmoore and both I think it's a good idea to convert- but you'll still deal with the same design issues in a way. You still need to think about how you want your traffic to flow. An offset list is way easier than the policy routing you were trying to do!

Your original question was on how to have automatic failover between 2 serial links running rip, with one primary and the other backup. What I suggested would add 1 hop to any routes arriving on the backup link but do nothing to any of the other links, whatever they are. That would give you what you asked for. Unless your network really is a string of 7 routers in a row, you shouldn't have a problem using RIP and an offset list for now.

That will give you your failover while you plan out your EIGRP conversion.